Tompkins Financial Q3 Net Income Jumps 27% on Strong Loan Growth

TL;DR

**TMP is crushing it with loan and deposit growth, making it a solid regional bank play.**

AI Summary

Tompkins Financial Corporation (TMP) reported a robust financial performance for the three and nine months ended September 30, 2025. For the three-month period, net income attributable to Tompkins Financial Corporation increased by 27% to $23.67 million, up from $18.64 million in the prior year. Basic earnings per share rose to $1.66 from $1.31. Net interest income saw a significant increase of 20.1% to $63.88 million, compared to $53.19 million in the same period last year. Total assets grew to $8.47 billion as of September 30, 2025, from $8.11 billion at December 31, 2024, representing a 4.4% increase. Total loans and leases, net of unearned income, increased to $6.29 billion from $6.02 billion, while total deposits also rose to $7.05 billion from $6.47 billion. The allowance for credit losses increased to $59.89 million from $56.50 million, reflecting a higher provision for credit loss expense of $2.49 million for the quarter, up from $2.17 million. Strategic outlook remains positive with growth in core banking activities and wealth management fees, which increased to $4.98 million from $4.93 million for the quarter.

Why It Matters

This strong performance by Tompkins Financial Corporation signals healthy regional economic activity, particularly in lending and deposit growth, which is crucial for investors seeking stability in community banking. The increase in net interest income and net income suggests effective interest rate management and robust demand for financial services, potentially outperforming some larger, more diversified banks. For employees, continued growth could mean job security and opportunities, while customers benefit from a stable, expanding financial institution. In a competitive landscape, Tompkins' ability to grow deposits and loans, alongside an increase in wealth management fees, indicates a strong market position and effective client retention strategies, making it an attractive option for investors looking for regional banking exposure.

Risk Assessment

Risk Level: medium — The risk level is medium due to the increased provision for credit loss expense, which rose to $10.56 million for the nine months ended September 30, 2025, from $5.20 million in the prior year, indicating potential concerns about loan quality. Additionally, 'Other borrowings' increased significantly by $243.95 million in financing activities for the nine months, suggesting reliance on external funding sources, which could be sensitive to interest rate fluctuations.

Analyst Insight

Investors should consider Tompkins Financial's consistent growth in net interest income and net income as a positive indicator for long-term value. Monitor the allowance for credit losses and 'other borrowings' trends in future filings to assess asset quality and funding stability. The stock could be a stable addition to a diversified portfolio, particularly for those seeking exposure to regional banking strength.

Financial Highlights

debt To Equity

N/A

revenue

$63.88M

operating Margin

N/A

total Assets

$8.47B

total Debt

N/A

net Income

$23.67M

eps

$1.66

gross Margin

N/A

cash Position

$193.49M

revenue Growth

+20.1%

Revenue Breakdown

Key Numbers

• $23.67M — Net Income Attributable to Tompkins Financial Corporation (Increased by 27% for the three months ended September 30, 2025, from $18.64M in 2024.)
• $1.66 — Basic Earnings Per Share (Increased from $1.31 for the three months ended September 30, 2025.)
• $63.88M — Net Interest Income (Increased by 20.1% for the three months ended September 30, 2025, from $53.19M in 2024.)
• $8.47B — Total Assets (Increased by 4.4% to $8.47B as of September 30, 2025, from $8.11B at December 31, 2024.)
• $6.29B — Total Loans and Leases, net (Increased from $6.02B at December 31, 2024.)
• $7.05B — Total Deposits (Increased from $6.47B at December 31, 2024.)
• $59.89M — Allowance for Credit Losses (Increased from $56.50M at December 31, 2024.)
• $2.49M — Provision for Credit Loss Expense (Increased for the three months ended September 30, 2025, from $2.17M in 2024.)
• $11.28M — Insurance commissions and fees (Remained stable for the three months ended September 30, 2025, compared to $11.28M in 2024.)
• $4.98M — Wealth management fees (Increased for the three months ended September 30, 2025, from $4.93M in 2024.)

Key Players & Entities

• Tompkins Financial Corporation (company) — Registrant and parent company
• Tompkins Community Bank (company) — Wholly-owned banking subsidiary
• Tompkins Insurance Agencies, Inc. (company) — Wholly-owned insurance agency subsidiary
• Federal Reserve Board (regulator) — Regulates Tompkins Financial Corporation
• Federal Deposit Insurance Corporation (regulator) — Regulates Tompkins Community Bank
• New York State Department of Financial Services (regulator) — Regulates Tompkins Community Bank and Tompkins Insurance
• NYSE American (company) — Exchange where TMP common stock is traded
• $23,673,000 (dollar_amount) — Net Income Attributable to Tompkins Financial Corporation for Q3 2025
• $63,878,000 (dollar_amount) — Net Interest Income for Q3 2025
• $8,468,731,000 (dollar_amount) — Total Assets as of September 30, 2025

FAQ

Risk Factors

• Credit Risk and Loan Portfolio Quality [medium — financial]: The company's net loans and leases increased to $6.23 billion. The allowance for credit losses rose to $59.89 million, with a higher provision for credit loss expense of $2.49 million for the quarter. This indicates a cautious approach to potential loan defaults, especially in a fluctuating economic environment.
• Interest Rate Sensitivity [medium — market]: Net interest income increased by 20.1% to $63.88 million, suggesting the company is benefiting from current interest rate environments. However, significant shifts in interest rates could impact future net interest margin and the valuation of securities portfolios.
• Regulatory Compliance and Capital Requirements [high — regulatory]: As a financial institution, Tompkins Financial Corporation is subject to extensive regulatory oversight. Changes in capital requirements, lending standards, or other banking regulations could impact operations and profitability.
• Cybersecurity and Data Breaches [medium — operational]: The increasing reliance on digital platforms and the sensitive nature of customer data expose the company to risks of cyberattacks and data breaches, which could lead to financial losses and reputational damage.

Industry Context

Tompkins Financial Corporation operates within the highly competitive U.S. banking industry, characterized by increasing digital adoption, evolving regulatory landscapes, and fluctuating interest rate environments. Key trends include consolidation, a focus on non-interest income streams like wealth management, and the ongoing challenge of managing credit risk in diverse economic conditions.

Regulatory Implications

As a financial institution, Tompkins is subject to stringent regulations from bodies like the Federal Reserve and FDIC. Compliance with capital adequacy ratios, anti-money laundering laws, and consumer protection regulations is paramount. Any changes in these regulations could necessitate adjustments to business practices and impact profitability.

What Investors Should Do

1. Monitor loan growth and credit quality metrics.
2. Analyze the drivers of net interest income growth.
3. Evaluate the performance of non-interest income segments.

Key Dates

• 2025-09-30: Quarterly Financial Reporting — Reported increased net income, EPS, and net interest income, indicating strong operational performance.
• 2024-12-31: Year-End Financial Reporting — Provided audited financial statements against which current performance is compared.

Glossary

Allowance for credit losses

An estimate of the amount of uncollectible loans in a company's loan portfolio. (An increase in this allowance suggests the company anticipates higher loan defaults, impacting future profitability.)

Net Interest Income

The difference between the interest income generated by a bank and the interest paid out to its depositors and lenders. (A key driver of profitability for banks; a significant increase indicates successful interest rate management or loan growth.)

Available-for-sale debt securities

Investments in debt securities that are not classified as held-to-maturity or trading securities. Their unrealized gains and losses are reported in other comprehensive income. (Their fair value and performance can impact the company's equity and overall financial position.)

Held-to-maturity debt securities

Investments in debt securities that the company has the intent and ability to hold until maturity. They are reported at amortized cost. (Represents a stable, long-term investment that is not subject to market value fluctuations in the same way as available-for-sale securities.)

Provision for credit loss expense

The amount charged to earnings to cover anticipated losses on loans and leases. (An increase in this expense indicates a more conservative outlook on the quality of the loan portfolio.)

Year-Over-Year Comparison

Compared to the prior year, Tompkins Financial Corporation has demonstrated significant growth in key performance indicators. Net income attributable to the corporation surged by 27%, and basic earnings per share rose to $1.66. Net interest income saw a robust increase of 20.1%, reflecting strong performance in core lending activities. Total assets and total deposits have also grown, indicating an expanding balance sheet. The allowance for credit losses and provision for credit loss expense have increased, suggesting a proactive stance on potential credit risks.

Key Financial Figures

• $0.10 — ange on which registered Common Stock, $0.10 par value TMP NYSE American, LLC Indi
• $250,000 — PENSE Time certificates of deposits of $250,000 or more 4,063 4,158 12,710 12,216 Othe

Filing Documents

• tmp-20250930.htm (10-Q) — 3571KB
• tmpex3112025-09x30.htm (EX-31.1) — 12KB
• tmpex3122025-09x30.htm (EX-31.2) — 12KB
• tmpex3212025-09x30.htm (EX-32.1) — 6KB
• tmpex3222025-09x30.htm (EX-32.2) — 6KB
• tmp-20250930_g1.jpg (GRAPHIC) — 752KB
• 0001005817-25-000040.txt ( ) — 19117KB
• tmp-20250930.xsd (EX-101.SCH) — 46KB
• tmp-20250930_cal.xml (EX-101.CAL) — 132KB
• tmp-20250930_def.xml (EX-101.DEF) — 342KB
• tmp-20250930_lab.xml (EX-101.LAB) — 757KB
• tmp-20250930_pre.xml (EX-101.PRE) — 589KB
• tmp-20250930_htm.xml (XML) — 4659KB

-FINANCIAL INFORMATION

PART I -FINANCIAL INFORMATION PAGE Item 1 –

Financial Statements

Financial Statements Consolidated Statements of Condition as of September 30, 2025 (Unaudited) and December 31, 2024 (Audited) 1 Consolidated Statements of Income for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 2 Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 3 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (Unaudited) 4 Consolidated Statements of Changes in Shareholders' Equity for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 6 Notes to Unaudited Consolidated Financial Statements 8 Item 2 -

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 40 Item 3 -

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 58 Item 4 -

Controls and Procedures

Controls and Procedures 59

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1 –

Legal Proceedings

Legal Proceedings 59

– Risk Factors

Item 1A – Risk Factors 59 Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 59 Item 3 - Defaults Upon Senior Securities 60 Item 4 - Mine Safety Disclosures 60 Item 5 - Other Information 60 Item 6 - Exhibits 61

SIGNATURES

SIGNATURES 62 Glossary of Abbreviations and Acronyms The acronyms and abbreviations identified below are used throughout this report, including the Notes to Consolidated Financial Statements. You may find it helpful to refer to this page as you read this report. All references in the glossary to laws are to those laws as amended from time to time. Term Definition ACL Allowance for credit losses AFS Available for sale ASC Accounting Standards Codification ASU Accounting Standards Update BHC Act Bank Holding Company Act of 1956 BOLI Bank owned life insurance CECL Current Expected Credit Losses CRE Commercial real estate DIF Deposit Insurance Fund Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 ECL Expected credit losses ESOP Employee Stock Ownership Plan Exchange Act Securities Exchange Act of 1934 FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation FHLB Federal Home Loan Bank FHLBNY Federal Home Loan Bank of New York FHLMC Federal Home Loan Mortgage Corporation FRB Federal Reserve Board GAAP U.S. Generally Accepted Accounting Principles HTM Held to maturity NYSDFS New York State Department of Financial Services OREO Other real estate owned PCA Prompt corrective action PCD Purchased with credit deterioration PCI Purchased credit impaired ROU Right-of-use Sarbanes-Oxley Sarbanes-Oxley Act of 2002 SBIC Small business investment companies SEC Securities and Exchange Commission Securities Act Securities Act of 1933 SERP Supplemental employee retirement plan SONYMA State of New York Mortgage Agency TDR Troubled debt restructuring Tompkins Annual Report Tompkins Annual Report on Form 10-K for the year ended December 31, 2024 Tompkins Insurance Tompkins Insurance Agencies, Inc. Tompkins or the Company Tompkins Financial Corporation

Financial Statements

Item 1. Financial Statements TOMPKINS FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF CONDITION (In thousands, except share and per share data) (Unaudited) As of As of ASSETS 9/30/2025 12/31/2024 (unaudited) (audited) Cash and noninterest bearing balances due from banks $ 77,115 $ 53,635 Interest bearing balances due from banks 116,377 80,763 Cash and Cash Equivalents 193,492 134,398 Available-for-sale debt securities, at fair value (amortized cost of $ 1,380,783 at September 30, 2025 and $ 1,367,123 at December 31, 2024) 1,291,053 1,231,532 Held-to-maturity debt securities, at amortized cost (fair value of $ 281,624 at September 30, 2025 and $ 267,295 December 31, 2024) 312,510 312,462 Equity securities, at fair value 794 768 Total loans and leases, net of unearned income and deferred costs and fees 6,288,071 6,019,922 Less: Allowance for credit losses 59,889 56,496 Net Loans and Leases 6,228,182 5,963,426 Federal Home Loan Bank and other stock 27,083 42,255 Bank premises and equipment, net 73,842 76,627 Corporate owned life insurance 77,328 76,448 Goodwill 92,602 92,602 Other intangible assets, net 2,325 2,203 Accrued interest and other assets 169,520 176,359 Total Assets 8,468,731 8,109,080 LIABILITIES Deposits: Interest bearing: Checking, savings and money market 3,904,875 3,558,946 Time 1,242,051 1,068,375 Noninterest bearing 1,906,144 1,844,484 Total Deposits 7,053,070 6,471,805 Federal funds purchased and securities sold under agreements to repurchase 80,804 37,036 Other borrowings 444,866 790,247 Other liabilities 101,186 96,548 Total Liabilities 7,679,926 7,395,636 EQUITY Tompkins Financial Corporation shareholders' equity: Common Stock - par value $ 0.10 per share: Authorized 25,000,000 shares; Issued: 14,461,230 at September 30, 2025; and 14,468,013 at December 31, 2024 1,447 1,447 Additional paid-in capital 301,184 300,073 Retained earnings 575,112 537,157 Accumulated other comprehensive loss ( 83,773 ) ( 11

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